Ensuring competitive electricity prices and security of supply

The significant expansion of renewable electricity supply, synchronized with the expansion of grids and storage facilities, can reduce electricity prices in the long term. However, short-term measures to reduce electricity costs remain essential to bridge the interim period. In addition, the EU should develop a comprehensive flexibility strategy that goes beyond energy storage and demand-side management to ensure security of supply.

Providing the necessary infrastructure for the green transformation

The success of the green transformation of the European economy depends crucially on the timely provision of essential energy and CO2 infrastructures. Relying solely on high CO2 prices in the EU ETS acts as a penalty for production facilities if the necessary (cross-border) infrastructure for low-carbon electricity, hydrogen and CO2 transport is lacking.

Ramp up the hydrogen market quickly and cost-effectively

An increased budget for the European Hydrogen Bank is essential for expanding the production of renewable hydrogen in the EU. However, renewable hydrogen alone will not be able to meet industrial demand in the short term and is likely to remain significantly more expensive than low-carbon (e.g. blue) hydrogen, at least until 2030. Therefore, the role of low-carbon hydrogen must be strengthened at EU level to ensure a fast and cost-efficient ramp-up of the European hydrogen market.

Preventing carbon leakage and ensuring competitiveness

The EU's newly introduced carbon border adjustment mechanism (CBAM) has various weaknesses that could jeopardize the global competitiveness of European industry if they are not addressed in a timely manner. Therefore, the option of withdrawing the CBAM should not be ruled out if necessary, while at the same time the abolition of free allocation in the EU ETS should be postponed until appropriate carbon leakage protection measures are in place.

Incentivize private investment in new production processes

In order to promote climate-friendly production processes that will remain (significantly) more expensive than their fossil alternatives for the foreseeable future, investment and, above all, operating cost support should be made possible, for example through climate protection contracts.

Creating green lead markets

To ensure reliable demand for low-carbon and climate-neutral goods, the public sector should lead the way with EU-wide binding green public procurement. Additional incentives in EU product policy should follow.

Strengthening business models for the production of clean technologies

The “Industrial Decarbonization Deal” recently announced by the Commission should include a comprehensive review of EU environmental legislation, which significantly influences the duration of approval procedures in the Member States. It should also include a strategy to mobilize public and private resources to close the funding gap for clean technologies.

Promoting sustainable transport across all technologies

Now that the EU has set ambitious climate protection targets in the transport sector, it must create the necessary framework conditions for the rapid introduction of alternative drive systems and carbon-neutral fuels. Particular attention should be paid to the development of the necessary charging and refueling infrastructure. In addition, technology-neutral incentives to reduce emissions should be introduced and the international competitiveness of aviation and shipping should be ensured.

Decarbonize the construction sector with innovative technology

Further progress is needed to achieve the EU's net-zero pathway in the construction sector. Therefore, the timely and full implementation of recently adopted European legislation, including the ETS 2 for buildings and road transport and the Energy Performance of Buildings Directive, is crucial.

Further developing the European circular economy

The development of an EU-wide circular economy offers an opportunity to make products more sustainable throughout their entire life cycle, minimize waste and reduce emissions, while at the same time creating new business opportunities. The European model of a comprehensive circular economy should therefore be further developed in the context of (international) climate policy.

The new elections to the EU Parliament provide an opportunity to take stock: where does EU energy and climate policy stand today and how well is it equipped to meet the current demands of global competitiveness, security of supply and resilience? The BDI stands ready to discuss these questions with the future EU Commission and to work towards corrections in the currently most urgent fields of action.